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To amend sections 135.631, 135.73, 135.74, and 135.75 | 1 |
of the Revised Code to modify the Agricultural | 2 |
Linked Deposit Program with respect to the maximum | 3 |
amount the Treasurer of State may invest in | 4 |
agricultural linked deposits, the interest rate at | 5 |
which loans are made under the Program, and the | 6 |
maximum loan amount. | 7 |
Section 1. That sections 135.631, 135.73, 135.74, and 135.75 | 8 |
of the Revised Code be amended to read as follows: | 9 |
Sec. 135.631. The treasurer of state shall attempt to place | 10 |
up to one hundred
| 11 |
amount authorized to be invested under section 135.63 of the | 12 |
Revised Code in agricultural linked deposits, as defined in | 13 |
section 135.71 of the Revised Code, subject to the procedures set | 14 |
forth in sections 135.71 to 135.76 of the Revised Code. | 15 |
Sec. 135.73. (A) An eligible lending institution that | 16 |
desires to receive an agricultural linked deposit shall accept and | 17 |
review applications for loans from eligible agricultural | 18 |
businesses. The lending institution shall apply all usual lending | 19 |
standards to determine the creditworthiness of each eligible | 20 |
agricultural business. No loan shall exceed one hundred fifty | 21 |
thousand dollars. | 22 |
(B) An eligible agricultural business shall certify on its | 23 |
loan application that the reduced rate loan will be used | 24 |
exclusively for agricultural purposes on land or in facilities | 25 |
owned or operated by the business in this state and that the loan | 26 |
will materially contribute to the preservation of the business. | 27 |
Whoever knowingly makes a false statement concerning such | 28 |
application is guilty of the offense of falsification under | 29 |
section 2921.13 of the Revised Code. | 30 |
(C) In considering which eligible agricultural businesses to | 31 |
include in the agricultural linked deposit loan package for | 32 |
reduced rate loans, the eligible lending institution shall give | 33 |
priority to the immediacy of a business's financial need for the | 34 |
loan to meet planting deadlines. The institution may also consider | 35 |
the economic needs of the area in which the business is located | 36 |
and other factors it considers appropriate to determine the | 37 |
relative financial need of the business. | 38 |
(D) The eligible lending institution shall forward to the | 39 |
treasurer of state an agricultural linked deposit loan package, in | 40 |
the form and manner prescribed by the treasurer of state. The | 41 |
package shall include information regarding the amount of the loan | 42 |
requested by each eligible agricultural business and such other | 43 |
information regarding each business as the treasurer of state | 44 |
requires. The institution shall certify that each applicant is an | 45 |
eligible agricultural business, and shall, for each business, | 46 |
certify the present borrowing rate applicable to each specific | 47 |
eligible agricultural business. | 48 |
Sec. 135.74. (A) The treasurer of state may accept or reject | 49 |
an agricultural linked deposit loan package or any portion | 50 |
thereof, based on the treasurer's evaluation of the eligible | 51 |
agricultural businesses included in the package, the amount of | 52 |
individual loans in the package, and the amount of the package. In | 53 |
evaluating the eligible agricultural businesses, the treasurer of | 54 |
state shall give priority to a business's financial need for the | 55 |
loan to meet planting deadlines but shall also consider the | 56 |
overall financial need of the business and the economic needs of | 57 |
the area where the business is located. | 58 |
(B) Upon acceptance of the agricultural linked deposit loan | 59 |
package or any portion thereof, the treasurer of state may place | 60 |
certificates of deposit with the eligible lending institution at a | 61 |
rate below current market rates, as determined and calculated by | 62 |
the treasurer of state, or may invest in bonds, notes, debentures, | 63 |
or other obligations or securities issued by the federal farm | 64 |
credit bank with respect to the eligible lending institution at a | 65 |
rate below current market rates, as determined and calculated by | 66 |
the treasurer of state. When necessary, the treasurer may place | 67 |
certificates of deposit or may invest in such obligations or | 68 |
securities prior to acceptance of an agricultural linked deposit | 69 |
loan package. | 70 |
(C) The eligible lending institution shall enter into an | 71 |
agricultural linked deposit agreement with the treasurer of state, | 72 |
which shall include requirements necessary to carry out the | 73 |
purposes of sections 135.71 to 135.76 of the Revised Code. | 74 |
The requirements shall | 75 |
(1) Include an agreement by the eligible lending institution | 76 |
to lend the value of the agricultural linked deposit to eligible | 77 |
agricultural businesses at a rate | 78 |
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each specific agricultural business in the accepted loan package | 80 |
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difference between one of the following, as applicable: | 82 |
(a) The market | 83 |
certificates of deposit that constitute the agricultural linked | 84 |
deposit were placed | 85 |
(b) The market rate and the actual rate at which the | 86 |
investments in bonds, notes, debentures, or other obligations or | 87 |
securities that constitute the agricultural linked deposit were | 88 |
made | 89 |
(2) Reflect the market conditions prevailing in the eligible | 90 |
lending institution's lending area. | 91 |
The agricultural linked deposit agreement may include a | 92 |
specification of the period of time in which the lending | 93 |
institution is to lend funds upon the placement of a linked | 94 |
deposit, and shall include provisions for the certificates of | 95 |
deposit to be placed or the investment in bonds, notes, | 96 |
debentures, obligations, or securities to be made for any maturity | 97 |
considered appropriate by the treasurer of state not to exceed two | 98 |
years and may be renewed for up to an additional two years at the | 99 |
option of the treasurer. Interest shall be paid at the times | 100 |
determined by the treasurer of state. | 101 |
(D) Eligible lending institutions shall comply fully with | 102 |
Chapter 135. of the Revised Code. | 103 |
Sec. 135.75. (A) Upon the placement of an agricultural | 104 |
linked deposit with an eligible lending institution, such | 105 |
institution is required to lend such funds to each approved | 106 |
eligible agricultural business listed in the agricultural linked | 107 |
deposit loan package required by division (D) of section 135.73 of | 108 |
the Revised Code and in accordance with the agricultural linked | 109 |
deposit agreement required by division (C) of section 135.74 of | 110 |
the Revised Code. | 111 |
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in the form and manner as prescribed by the treasurer of state | 119 |
shall be required of the eligible lending institution. | 120 |
(B) The treasurer of state shall take any and all steps | 121 |
necessary to implement the agricultural linked deposit program and | 122 |
monitor compliance of eligible lending institutions and eligible | 123 |
agricultural businesses, including the development of guidelines | 124 |
as necessary. | 125 |
Section 2. That existing sections 135.631, 135.73, 135.74, | 126 |
and 135.75 of the Revised Code are hereby repealed. | 127 |